(Reuters) – GE HealthCare Technologies on Thursday forecast annual profit above Wall Street estimates, counting on strong demand for its medical devices in markets such as the U.S. to offset weakness in China.
Manufacturers of medical devices have been benefiting from elevated demand for elective surgical procedures in the United States, especially among older adults. German peer Siemens Healthineers also posted strong quarterly revenue last week.
GE HealthCare expects 2025 adjusted profit of between $4.61 and $4.75 per share, with the midpoint above analysts’ average estimate of $4.66 per share, according to data compiled by LSEG.
The forecast includes an estimated impact from recently implemented U.S. tariffs on products from China, and the tariffs will likely result in extra costs.
GE HealthCare also said the company’s China sales will remain under pressure in the near-term due to a delay in the Asian country’s 2024 stimulus as well as an anti-corruption campaign targeting bribery involving doctors in drug and medical equipment sales.
Its China sales declined 15% in 2024, while the U.S. and Canada grew 5%.
The company’s total sales in the fourth quarter came in at $5.32 billion, compared with analysts’ average estimate of $5.33 billion.
On an adjusted basis, GE HealthCare earned $1.45 per share, compared with estimates of $1.26 per share.
The company’s imaging devices unit is the largest among its four segments. Its other three businesses are advanced visualization solutions, patient care solutions and pharmaceutical diagnostics.
(Reporting by Puyaan Singh and Padmanabhan Ananthan in Bengaluru; Editing by Devika Syamnath)
